1234567tax-2-reviewer-

Based on UP and AteneoLaw ReviewersandPM ReyesBar Reviewer
Estate Tax
Estate tax- graduatedtax imposeduponinthe privilege of the decedenttotransmitpropertyatdeath
and isbasedon netestate,consideredasa unit,anddeterminedbysubtractingallowable deductions
fromthe gross estate.
Nature
1. Excise of privilegetax
2. Imposedonrightto succeed,receive,take property
3. Under a will orintestancylaw
4. Deed,grantor gift
5. Become operative atorafter death
Purpose
1. Objectof estate tax- tax shiftingof economicbenefitsandenjoymentof propertyfromdeadto
living
2. Give addedincome tothe government
Justification Time Taxable transfers
1. Benefitreceivedtheory
2. Privilegetheoryorstate
partnershiptheory
3. Abilitytopaytheory
4. Redistributionof
wealththeory
Decedent’sinterestistoits
extentatthe time of his death
regardlessif itisindicatedina
will thatsellingordisposition
of hispropertyshouldbe 10
yearsafterhisdeath.
It shouldbe measuredbythe
value of the estate as itstood
at the time of the decedent’s
death,regardlessif any
postponementof actual
possessionoranysubsequent
increase ordecrease invalue.
(Lorenzovs.Posadas
1. Transfermortiscosa
2. Transferintervivos
a. Contemplationof
death
b. Transferwith
retentionor
reservationof certain
rights
c. Revocable transfers
d. Transferof property
arisingundergeneral
powerof
appointment
e. Transferfor
insufficient
consideration

Estate tax Donor Tax
transferswithoutonerousconsideration transferswithoutonerousconsideration
Tax on the privilegetotransferpropertyupon
one’sdeath(mortis causa)
Tax on the privilegetotransferpropertyduring
one’slifetime (intervivos)
Max tax rate of 20% on netestatesexceedingP10
millionandthe firstP200,000 is exempt
Max tax rate is15% onthe netgiftsexceeding
P10 millionandfirstP100,000 is tax exempt
Residence-permanenthome
Gross estate- value of all property,real orpersonal,tangible orintangible,actual andbeneficial
ownershipof whichwasinthe decedentatthe time of hisdeath
Netestate=grossestate – all deductions
Citizen/ResidentAlien Non- ResidentAlien
WithinandwithoutRP WithinRPonlyexcept:
1. Intangible personal propertyinthe
Philippines- unlessexemptedonbasisof
the principle of reciprocity
2. Intangible personal propertyoutsidethe
RP
Intangible Properties withinRP
1. Franchise exercisedinRP
2. Share,obligationorbondissuedbyRPonly
3. Share,obligationorbondissuedbyanyforeigncorporation85% of businessinRP
4. Share,obligationsorbondissuedbyforeigncorporationwithbusinesssitusinRP
5. Share or rightsin any businessestablishedinRP

Reciprocityclause (there must be total reciprocity,CIR vs Fisher)
Intangible personal propertyof adecedentwhoisanon-residentalien,withasitusinRPshall notform
part of the grossestate if:
1. The decedentatthat time of hisdeathwas a citizenandresidentof aforeigncountrywhichat the
time of hisdeath
a. Didnot impose atransfertax or deathtax of any character
b. Inrespectof the intangible personal propertyof citizensof the Philippinesnotresidinginthatforeign
country
2. law of foreigncountrywhichthe decedentwasacitizenandresidentatthe time of hisdeath:
a. allowa similarexemptionsfromtransfertaxesordeathtaxesof everycharacter
b. inrespectof the intangiblepersonalpropertyownedbycitizensof the Philippinesnotresidinginthat
foreigncountry.
Valuation
Real property=FMV byCommissionerof FMV by assessorswhicheverishigher
Personal Property=FMV at time of death
Shares of stocks
1. Listedshares=average of highestandlowestquotationdate nearesttodeath
2. Unlistedshares=commonsharesbookvalue;preferredshares=parvalue
3. Rightto usufruct,use or habitationannuity=DOF,ICapproved;latestbasicstandardmaturity
table
Includedin the gross esate
1. Actuallyandphysicallypresentpropertiesattime of death
2. Decedent’sinterest
3. Notphysicallypresent
a. Transferincontemplationof death
b. Transferwithretentionorreservationof certainrights
c. Revocable transfers
d. PropertypassingunderaGPA
e. Transfersforinsufficientconsideration
f. Proceedsof life insurance
g. Claimsagainstinsolventpersons
h. Capital of survivingspouse

Property ownedactually and physicallypresentat death- lands,buildings,sharesof stocks,vehicles,
bankdeposits,etc.
Decedent’s interest-dividendsetc.
Not physicallypresent
1. Transfersincontemplationof death
- Motivatingfactoror controllingmotive isthe thoughtof death
- Notapplicable if bonafide sale foranadequate
2. Transferswithretention/reservationof certainrights- transferduringlife butstill retain
economicbenefits;exceptbona fide sale
Illustration-XtransfershispropertytoY innakedownershipandtoZ in usufructthroughoutZ’slifetime.
It issubjectto the conditionthatif Z predeceasesX,the propertyshall returntoX.If X diesduringX’s
life,the value of the reversionaryinterestof Xat deathis includible inhisgrossestate.The transferis
taxable asintendedtotake effectator afterdeathbecause the possibilityof reversiontoXmake Z’s
interestconditional aslongasX lives.
Revocable transfers- Decedent’stransferof onlyinterestbytrustor otherwise,where the enjoyment
thereof wassubjectatthe date of hisdeathto any change throughthe exercise of powerbythe
decedentALONEorby the decedentIN CONJUNCTION WITHANYOTHER PERSON,toALTER, AMEND,
REVOKEor TERMINATE suchtransferor where suchpowerwhichwouldbringthe propertyinthe
taxable estate isrelinquishedincontemplationof the decedent’sdeath.
Except:Bona fide sale foranadequate andfull consideration
Power to alter,amend or revoke existeventhough:
1. Exercise of the powerissubjecttoa precedentgivingof notice or
2. Alteration,amendmentorrevocationtakeseffectonlyonthe expirationof astatedperiodafter
the exercise of the power,whetherornoton or before the date of the decedent’sdeathnotice
has beengivenorthe powerhasbeenexercised.-if notgivenbefore date of death,itshall be
consideredasdeemedgiven/exercisedondate of death.
GPA- appointanypersonhe pleases
SPA- restrictedordesignatedclassof personsotherthanself- propertybySPA excludedfromgross
estate
Gross estate includesGPA if:
1. By will
2. By deedexecutedincontemplationof orintendedtotake effectinpossessionorenjoymentat,
or afterhisdeath,or
3. By deedwhichhe retained:

a. Possessionorenjoymentorrighttothe income from, propertyor
b. Right,eitheralone orinconjunctionwhichanypersontodesignate the personswhoshall
possessorenjoythe propertyorthe income therefrom
Except:bonafide sale foran adequate andfull consideration
Transferfor insufficientconsiderationwill be includedif: (includible amountisexcessof the FMV at the
time of deathoverthe value of the considerationreceived)
1. In contemplationof death
2. Revocable transfer
3. GPA property
Otherwise itwillbe consideredfordonor’stax computation
Case A bonafide- novalue shall be includedinthe grossestate
Case B notbonafide excessof FMV part of Grossestate
Case C provenfictitious/simulated- total value of propertyattime of deathincludedingrossestate
Proceedsof life insurance taxable
1. Beneficiaryisthe estate of the deceased,hisexecutororadministrator,irrespectiveof whether
or not the insuredretainedthe powerof revocation
2. Beneficiaryisotherthanthe decedent’sestate,executororadministrator,whendesignationof
beneficiarynotexpresslymade irrevocable
Proceedsof life insurance nottaxable
1. Accidentinsurance proceeds
2. Proceedsof a groupinsurance policy(Mortgage redemptioninsurance-MRI) takenoutbya
companyfor itsemployees
3. Amountreceivablebyanybeneficiaryirrevocablydesignatedinthe policyof insuranceby
the insured.The transferisabsolute andthe insureddidnotretainanylegal interestinthe
insurance
4. Proceedsof insurance policiesissuedbythe GSIStogovernmentofficialsandemployees
whichare exemptfromall taxes
5. Benefitsaccruingunderthe SSSlaw
6. Proceedsof life insurance payable toheirsof deceasedmembersof militarypersonnel
Policy before marriage- sourcesof fundsdetermineownershipof the proceedsof life insurance
Policytakenduringmarriage
a. Beneficiaryisestate of the insured- presumedconjugal;½share of the survivingspouse isnot
taxable

b. Beneficiaryis3rd
person- proceeds are payable tobeneficiary evenif premiumswerepaidoutof
conjugal
Prior interests
I. transferincontemplationof death
Nota transferincontemplationof deathif:
1. desire tosee hischildrenenjoythe propertywhilethe donorisstill alive
2. Save income or propertytaxes
3. Settle familydisputes
4. Relieve donorfromadministrative burden
5. Rewardservicesrendered
6. Provide independentincomefordependents
II. Revocable transfers
III.Proceedsof life insurance
Residentor citizendecedent Non-residentaliendecedent
Gross Estate (all propertieswithinand
withoutRP
Less:Deductions
1. Ordinarydeductions- ELIT(expenses,
losses,indebtedness,taxes)
a. Funeral
b. Judicial
c. Claimsagainstestate
d. Claimsagainstinsolventperson
e. Unpaidmortgage and debt
f. Taxes
g. Losses
2. Vanishingdeductions
3. Transfersforpublicuse
4. AmountsreceivedunderRA 4917
5. Special deductions
a. FamilyHome
b. StandardDeduction
c. Medical Expenses
6. Share in conjugal property
Gross Estate locatedinRP property
Less:Deductions
1. Ordinary deductions- Proportionate
ELIT
a. Funeral
b. Judicial
c. Claimsagainstestate
d. Claimsagainstinsolventpersons
e. Unpaidmortgage and debt
f. Taxes
g. losses
2. vanishingdeductions
3. transfersforpublicuse
4. amountreceivedunderRA 4917
5. share in conjugal property

*NRA= Gross estate phil/grossestateworldXworldexpenses,losses,indebtedness,taxes,
etc.
Funeral Expense-notexceedP200,000 and whicheverislowerinactual funeral expense or
5% of grossestate.
1. Mourningapparel
2. Expensesof the wake
3. Publicationcharges
4. Telecommunicationsexpenses
5. Cost of burial plot,tombstones,monumentormausoleum
6. Intermentand/orcremationfeesandcharges
7. Ritesandceremoniesincidenttointerment
Notdeductible- afterinterment,borne ordefrayedbyrelativesandfriends,medical expenses
Example:
1. 5% is P220,000 and actual amountis P215,000- max deductibleif P200,000
2. 5%- P100,000 and total amountis P150,000 withP20,000 still unpaid – deductibleisP100,000
Judicial expenses- Withreceiptsandinvoicesorswornstatementof account
1. Inventory- takingorcollectionof assets
2. Comprisingestate,theiradministration
3. Duringthe settlementof estate butnotbeyondthe lastdayprescribedbylaw orfor filing of
estate tax return
Example of Judicial expenses
1. Actual judicial orcourt expenses
2. Feesor executororadministrator
3. Attorney’sfees
4. Expensesof administrationsuchas:
a. Accountant’sfees
b. Appraiser’sfees
c. Clerkhire
d. Cost of preservinganddistributingthe estate
e. Cost of storingor maintainingpropertyof the estate
f. Brokerage fees forsellingpropertyof the estate
5. Notarial fee
Claimsagainst estate
1. Debtsor demandsof a pecuniarynature
2. Couldhave beenenforcedagainstthe deceasedinhislifetimeandcouldhave beenreducedto
simple moneyjudgment

3. Contract,tort or operationof law
4. Dulynotarizedexceptif grantedbyfinancial institutions
5. Loan was contractedwithin3yearsbefore deathof decedent,administratororexecutorshall
submita statementunderoathshowingthe dispositionof the proceedsof the loan
To be deductible itshouldbe (PVNGF)
1 Personal obligation
2 Good faith
3 Validinlaw
4 Enforceable incourt
5 Noncondonedor notprescribed
Claimsagainst insolventpersons
1. Notcollectible
2. Shouldbe provenalthoughjudicial declarationnotrequired
Unpaidmortgages
1. Gross estate mustinclude fairmarketof propertyencumberedbysuchmortgage or
indebtedness
2. Deductionshall be limitedtothe extentthattheywere contractedbonafie andforan adequate
and full considerationinmoneyormoney’sworth,if suchunpaidmortgagesorindebtedness
were foundedupontopromise oran agreement
Taxes- accrued and unpaidatdeath
Thisdeductiondoesnotinclude incometax uponincome receivedafterdeath,orpropertytaxes
accrued afterhisdeath,or the estate tax due fromthe transmission of hisestate
Losses
1. Incurredduringsettlementof estate
2. Fortuitouseventslike fires,storms,etc
3. Notcompensatedbyinsurance orotherwise
4. Lossesnotclaimedas a deductionforincome tax purposesinanincome tax returnof the estate
subjecttoincome tax
5. Notlaterthan the last dayfor paymentof the estate tax (6 monthsafterthe deathof the
decedent)
6. Properlypreviouslytaxed- vanishingdeductions
Example:A diedinDecember2003, March 2003
B (A’sfatherdied) andleftA same propertiesasinheritance

Vanishingdeductionsapplicable aslongasPINID
a. Death
b. Identityof the property
c. Locationof the property
d. Inclusionof the property
e. Previoustaxationof the property
f. No previousvanishingdeduction
Example:
A inherited P870000
Subtract mortgage 70000
Initial basis P800000/total amount* ordinaryexpenses*
multiplywithvanishingdeductionrate
Vanishingdeductionrate
100% 1 yr priorto the death(inheritance orgift) of the
presentdecedent
80% More than 1 yr to2 yr
Special deductions
Familyhome- maximumof P1M
1. Dwellinghouse
2. Actual residentialhome
3. Value of familyhome partof grossestate
4. FMV currentnot exceedP1M
5. Married or headof the family
6. Beneficiariesdwellinginfamilyhome
7. Ownedbydecedent
Beneficiariesof familyhome
a. Husband,wife,headof family
b. Parents,ascendants,descendants
c. Brothersand sisters

Medical expenses- max P500k
a. 1 yr priorto death
b. Withreceiptsanddocuments
Netshare of survivingspouseinthe conjugal partnership
Property- ½of 50%
Transfer for PublicUse
1. the dispositionisinthe lastwill andtestament
2. take effectafterdeath
3. in favorof the governmentof the Philippinesoranypolitical subdivisionthereof
4. exclusive forpublicpurpose
5. value of propertygivenisincludedinthe grossestate.
Exemptionsand exclusionsfromgross estate
1. Capital/paraphernal of survivingspouse
2. Propertyoutside RPof non-residentaliendecedent
3. Intangible personal propertyin the Philippinesof anon-residentalienif thereisreciprocity
4. Merger of usufructof nakedtitle owner
5. Transmissionordeliveryof inheritance orlegacybyfiduciaryheirtofideicomissary
6. Transmissionfrom1st
heir,legatee ordone infavorof anotherbeneficiary
7. Bequests,devices,legaciesortransferstosocial welfare,cultural andcharitable institutions,no
part of the netincome of whichinurestothe benefitof anyindividuals- notmore than30% used
for administrationpurposes
Exclusionsunderspecial laws
1. Proceedsof life insurance benefitsreceivedbyGSISmembers
2. SSS
3. Damagesfromlast war
4. US VeteransAdministration
Tax Credit- remedyagainstinternational doubletaxation
Notice of deathto BIR- within2 months

Estate tax return
a. Estate subjectto estate tax
b. ExceedP200K
c. Registered/registrable property (AAB,RDO,collectionofficer)
Donor’s Tax
Donor’stax
a. Intervivos
b. Made betweenlivingpersonstotake effectduringthe lifetimeof the donor
c. Supplementsestate tax
d. Completedgiftbefore application
e. Preventavoidance of income tax throughthe device of splittingincome amongnumerous
donees,whoare usuallymembersof afamilyorintomany trusts,withthe donorthereby
escapingeffectof progressive ratesof income tax
f. Raise revenues,tax wealthyandreduce certainotherexcise taxes,discourageintervivos
transfers,reduce incentive tomake giftsinorderthatdistributionof future income
ValidDonation(RequisitesCIDA)
a. Capacityto donate of donor
b. Intentto donate
c. delivery
d. Acceptance of done
Incomplete giftbecauseof reservedpowersbecome complete if donorrenouncespowerorrightto
exercise reservedpowerceases
Pirovanovs.CIRdoctrine-The donationisnotremuneratoryasA has beenfullycompensatedforhis
services.A donationmade bythe corporation tothe heirsof a deceasedofficeroutof gratitude forthe
officer’spastservicesisconsideredadonationandissubjectto donee’sgifttax.The factthat his
servicescontributedinalarge measure tothe successof the company did notgive rise to a recoverable
debt,andthe conveyancesmade bythe companytohisheirsremaina giftor donation.
Validdonation of a movable
1. oral or writing(if more thanP5000, donationandacceptance in writing)
2. delivery

Validdonation of an immovable
1. publicdocument
2. specified
3. Acceptance througha deedor similarinstrument
Transfer which may be constitutedas donation
a. Sale/exchange/transferof propertyforinsufficientconsideration- propertysubjecttofinal
capital gainstax buttransferredforlessthanan adequate andfull considerationin
money/money’sworth
FMV of property>value of agreedor actual considerationorsellingprice
Shall be deemedagift
b. Condonation/permissionof debt- debtordidnotrender
Service infavorof the creditor
FMV> GSP- capital gainstax
Real propertyconsideredcapital assetsare excepted
Examples:
1. A soldhislot to hisbrotherforP500,000. FMV P1M. A bought itfor P100,000. Sharessoldat
P300,000; FMV P500,000 and boughtP100,000.- Lot notsubjectto donor’stax it isa real property
classifiedascapital assetandsubjectto6% CGT. Sharesare subjectto30% donor’stax basedon the
difference betweenthe sellingprice andmarketvalue.
2. CreditorsA,B and C condoneddebtof XYZ corporationdue to restructuring- Notsubjecttodonor’s
tax since condonationwasnotimplementedwithadonative intentbutonlyforbusinessconsideration.
Restructuringnotresultof mutual agreementbetdebtorandcreditorbutthroughcourtaction of debt
rehabplan.
3. Transferthrough special purpose vehicle (SPV)-notsubjecttodonation
4. Renunciationof hereditaryshare of B inA’sestate forX who isa special child- Yesdonor’stax.
Renunciationwasspecificallyandcategoricallydone infavorof X and identifiedheirtothe exclusionor
disadvantage of otherheirsinthe hereditaryestate. If notspecificallyorcategoricallydone,notsubject
to donor’stax.
Intangible property rules(same with that inEstate)
Classifications
a. Citizen/resident- all withinandwithoutRP
b. Non-residentalien-withinRPonly

Reciprocityandintangiblepropertyrules- see Estate
Determinationof GrossGift
a. Real and personal propertygifts
b. Real and tangible personalpropertygifts
Compositionofgross gift- intervivosdonations
1. Transferisin trustor otherwise
2. Giftis director indirect
3. Real,personal,tangible orintangible
Valuationof gifts;amountof gift=FMV at time of donation
Real property=zonal value orlatestschedule of valuesof the provincialandcityassessor- whicheveris
higher
Improvement-constructioncostperbuildingpermitand/oroccupancypermitplus10% per yearafter
yearof constructionof FMV perlatesttax declaration
Computationof donor’stax
Gross giftmade
-deductionsfromgrossgifts
Netgiftsmade
*multipliedbyapplicable rate
Donor’stax onthe netgifts
If several gifts
Gross giftsmade or thisdate
Less:Deductionsfromgrossgifts
Netgiftsmade on thisdate
Add:all prior netgiftsduringthe year
Aggregate netgifts
Multipliedbyapplicablerate
Donor’stax onthe aggregate netgifts
Less:donor’stax paidonprior netgifts
Donor’stax due onthe netgiftsto date
Tax rate applicable=graduated,howeverif stranger,then30% of netgifts
Strangeris
1. Nota brother,sister(whole/half-blood),spouse,ancestororlineal descendant
2. Nota relative consanguinityinthe collateral line within4th
degree of relationship

Limitationsontax credit:
1. Netgift(foreigncountry)/entire netgifts*Philippine donor’stax
2. Netgift(all foreigncountries)/entire netgifts*Philippine donor’stax
Exemptions
1. Dowriesordonationsmade (max P10k)
a. On account of marriage
b. Before itscelebrationorwithin1yr
c. By parentsto eachof theirlegitimate,recognized,natural oradoptedchildren
d. To the extentof the 1st
P10k
e. Notbe availedbynon-residentalien
If both parentsdonated=½ to eachdonorspouse (separate filing)
2. National governmentuse
3. Educational,charitable,religious,cultural orsocial welfare(notmore than30% for
administrationpurpose)
File within30days- donor’stax return

VAT
Concept
1. Percentage tax onsale,barter,exchange orlease of goods,properties,services
2. Output- inputtax=VAT
3. Excise tax=privilege tax
4. Ad valoremtax=grossvalue or GSP inmoneyof goods and services
Characteristics
1. Tax on consumptionleviedonthe sale,barter,exchange orlease of goodsorpropertiesand
servicesinthe Philippinesandonimportationof goofsintoRP
2. Indirecttax
3. Notoppressive,arbitraryandconfiscatory
4. Uniform
5. Equitable
6. Regressive
Impact of taxation- statutorypayer,sellerorimporter,one whomgovernmentcollects
Incidence of taxation- bearsburden;final consumer
Tax creditmethod- inputtaxesshiftedbythe sellerstothe buyerare creditedagainstthe buyer’s output
taxeswhenhe inturn sellsthe taxable goods,propertiesorservices
DestinationPrinciple- jurisdictional reachof VAT,where countrytheyare consumed
CrossBorder Doctrine- noVATshall be imposedtoformpart of the cost of the goodsdestinedfor
consumptionoutsidethe territorialborderof the taxingauthority
Personsliable:
1. sells,barters,orexchangesgoodsorproperties(sellerortransferor)
2. leasesgoodsor properties(lessor)
3. Rendersservices(service provider)
4. Import goods(importer),whetherornotmade in the course of trade or business
Absence of thiswill not be subjectto VAT reimbursable (CIRvs Sony)
Sale of parking lot not includedinsale of condominiumunit (RR 13-2012)

Ecozones
1. Separate customsauthority
2. Legal fictionof foreignterritory
3. Zero-rated
4. Same treatmentwithcustomsterritory- also0% VAT
2 typesof Zero-ratedtransactions
1. Automatic- referstoexportsale of goods,propertiesandsupplyof servicesbyaVAT-registered
person
2. Effective- referstolocal sale of goodsand propertiesbyaVAT-registeredperson toa personor entity
whowas granteddirectand indirecttax exemptionunderspeciallawsorinternational agreements
To be entitledto refundas in the case ofSitel vs CIR:
1. zero-ratedoreffectivelyzero-ratedsales
2. inputtaxeswere incurredorpaid
3. such inputtaxesare directlyattributable tozero-ratedoreffectivelyzero-ratedsales
4.inputtaxeswere notappliedagainstanyoutputVATliabilityand
5. claimfor refundwasfiled withinthe 2-yearprescriptive period
Customsterritory- national territoryof the Philippinesoutsideof the proclaimedboundariesof the
ECOZONEsexceptthose areasspecificallydeclaredbyotherlawsand/orpresidentialproclamationsto
have the status of special economiczonesand/orfree ports
a. Sale of servicesbyecozone enterprise,toanotherecozone enterprise(intra-ecozone),
enterprise (sale of service)
- PEZA registeredsubjectto5% special tax regime (exemptfromVAT)
- If PEZA registeredsubjectto tax underNIRC=0% VATunderCROSSBORDER DOCTRINE
b. VAT-Exemptsupplierfromcustomsterritorytoa PEZA registeredenterprise-exemptfromVAT
c. PEZA registeredenterprise- technical importation,imposedwithcorrespondingVAT
d. Sale of Servicesbya PEZA registeredenterprisetoa buyerfromthe customsterritory- 12% VAT
e. Sale of Goods bya PEZA registeredenterprisetoanotherPEZA registeredenterprise-exempt
fromVAT
In the course of trade or business- regularconductor pursuitof a commercial orany economic
activityincludingtransactionsincidentalthereto
- Non-residentswhoperformserviceinRPdeemedmakingsalesinthe course of trade or
business

- Membershipfeesandassociationduescollectedbyclubs,condominiumcorporations
(subjecttoVAT)
Exceptif:
1. Gross annual salesand/orreceiptsdonotexceedP1,919,500
2. Taxpayerisnot a VAT- registeredperson
-taxpayershouldby3%tax equivalentof hisgrossmonthlysales/receipts
-marginal income earners- notsubjecttobusinesstaxesbecause theyare not consideredas
engagedintrade or business
-notexceedingP100,000 grosssalesor receiptsperyear
IMPORTERS SHOULD PAY VAT
VATON SALE OFGOODS OR PROPERTIES(12% VAT)
Goodsor Properties
1. Real properties
2. Patentcopyrightet.al.
3. Rightto use RP of any industrial,commercial,orscientificequipment
4. Rightor privilege touse motionpicture films,filmtapes/discs
5. Radio,tv,satellite transmissionandcable tvtime
Requisites
1. Actual or deemedsale
2. In the course of trade or business
3. RP consumption
4. NotexemptfromVAT
GSP
1. If real property- salesdocumentorFMV
a. CIR zonal value
b. Assessorreal propertytax declaration
2. Sale of residential lot>P1,919,500
3. House and lot/otherresidential dwelling>P3,199,200
4. Lease of residential until >P12,800/mo or P1,919,500/year
Exclusive of VATandalsoif not billedseparately,exclusiveof VATaswell
Not taxable
1. Notprimarilyforsale
2. Low cost or socializedhousing
3. Residential lot<P1,919,500
4. House and lot/dwelling<P3,199,200
5. Lease < P12,800/mo or P1,919,500 peryear
6. Transmissionof atrustee

7. Transferto corporationinexchange of stocks
8. Advance paymentbylessee
9. Securitydepositsforlease agreements
1. Installmentplan-initial paymentsbefore executionof sale,includingdownpayments,etc
- Do not exceed25%of GSP
- Taxable onlyorpaymentactuallyorconstructivelyreceived
2. DeferredPayment-initial paymentsexceeds25% of GSP
-treatedascash sale and the entire sellingprice istaxable onthe monthof sale
Zero-ratedgoods
a. A zero-ratedsale byaVAT-registeredpersonisataxable transactionsforVATpurposes,butshall
not resultinanyoutputtax
b. However,inputtax onpurchasesof goods,propertiesorservicesrelatedtosuchzero-ratedshall be
available astax creditor refund
Export sales
a. Sale and actual shipmentof goodsfromRP toother country
b. Sale of raw materialsorpackagingmaterialstoa nonresidentbuyerfordeliverytoa resident
local exportorientedenterprise
c. Sale of raw material/packagingmaterialswhose exportsalesexceed70% of annual production
d. Sale of goldto BSP
e. Those consideredexportsalesunderthe OmnibusInvestmentCode of 1987
Constructive Exports
1. Salestobondedmanufacturingwarehousesof export-orientedmanufacturing
2. Salestoexportprocessingzones
3. Sale to registeredexporttraders
4. Sale to diplomaticmissionandotheragencies
5. Sale of goods,suppliesequipmentfuels- anotherexportsale
ForeignCurrency DenominatedSales(FCDS)
1. Sale to a nonresidentof goods,exceptthose mentionedinSections149 and150 for deliverytoa
residentin the Philippinespaidinacceptance foreigncurrencyandaccountedforinaccordance
withthe rulesandregulationsof the BSP
2. Salesof locallymanufacturedorassembledgoodsforhouseholdandpersonal use toFilipino
abroad andother non-residentof RP

Transactions deemedsale=12% VAT, fair market value and acquisitioncost (applicable inSan Roque
vs CIR)
1. Consignmentof goodsif actual sale notmade within60 days- not deemedsold
2. Distributionortransfertoshareholders,investors,orcreditors
3. transfer,use or consumptionnotinthe course of businessof goods/propertiesoriginallyintendedfor
sale or use inthe course of business
4. Retirementorcessationof personorbusiness=12%
Exempt:
1. Change or control of a corporation
2. Merger or consolidation
3. Change inthe trade or corporate name
Gross receipts- total amountof moneyoritsequivalentrepresentingthe contractprice,compensation,
service fee et.al.actuallyorconstructivelyreceived
Constructive receipts- moneyconsiderationoritsequivalentisplacedatthe control of the personwho
renderedservice withoutrestrictionsbythe payor
- Depositsinbanks,issuance bydebtorof notice toaccept,transferof amountsretainedby
contractee to account of the contractor
Requisitesfora taxability
1. Performedinthe course of trade or businessinRP
2. Valuable considerationactuallyorconstructivelyreceived
3. Service isnotexemptunderTax Code,special law orinternational agreement
4. Personsellingorrenderingservice isliabletoVAT
Meaningof sale/exchangeof services
1. Contractors
2. lessors
3. brokers
4. warehousingservices
5. cinematographicfilms
6. milling,processing,manufacturing
7. movie houses
8. eatingplaces
9. dealersinsecurities
10. lending
11. transportation
12. commoncarriers
13. electricity
14. franchise grantees
15. non-lifeinsurance

16. others
17. copyrightet.al.
Zero-ratedsale ofservices
1. VATable
2. But no outputtax
3. Inputtax fortax creditor refund
4. For otherpersonsdoingbusinessoutsideRP
5. Personengagedinbusinessconductedoutside the RPora nonresident personnotengagedin
RP
6. Exemptionunderspecial lawsorinternational agreements
7. Subcontractorsand/orcontractors
8. Transport of passengerandcargo
9. Sale of poweror fuel generatedthroughrenewable sourcesof energy
VATexempt(see previouspagesfornot taxable)
1. Agricultural
2. Fertilizers
3. Percentage tax services
4. Medical,dental,hospital
5. Employer-employee
6. International agreement
7. Agri coop
8. Educational
9. CDA
10. Non-agri CDA
11. Low cost housing
12. Social housing
13. > P1,919,500 or P3,199,200
Inputtax- VATdue on or paid by a VAT-registeredpersonorimportationof goodsorlocal purchases
of goods,propertiesorservicesincludinglease oruse of propertyincourse of his trade or business

Sourcesof inputtax:
a. Transitional inputtax-2%of value of beginninginventoryonhandor actual VATpaid onsuch
goods,material andsupplywhicheverishigher
b. Purchase or importationof goods
1. for sale
2. for conversionintoorintendedtoformpartof a finishedproductforsale,includingpackaging
materials
3. suppliedinthe course of business
4. use of raw materialssuppliedinthe sale of servicesor
5. use intrade or businessforwhichdeductionfordepreciationoramortizationisallowedunder
the Tax Code
c. Purchase of real propertiesforwhichVAThasactuallybeen paid
d. Transactionsdeemedsale
e.Presumptive Inputtax
- 4% of grossvalue inmoneyof theirpurchasesof primaryagricultural productswhichare
usedas inputto theirproduction
- Engagedinprocessingof sardines,mackerel andmilk,refinedsugar,cookingoil,packed
noodle-basedinstantmeals
f.Transitional inputtax creditsallowedunderthe transitoryandotherprovisionsof these Regulations
g. Creditable WithholdingVATonpaymentstonon-residents
h. Purchasesof servicesinwhichaVAThas beenactuallypaid
Taxpayer Time to claim inputtax
Importer Upon paymentof VATpriorto the release of
goodsfrom customscustody
Purchaserof domesticgoodsor properties Upon consummationof sale
Purchaserof servicesorthe lessee orlicensee Upon paymentof the compensation,rental,
royaltyor fee
To the purchaserof real propertyunder:
Cash/Deferredpaymentbasis
Installmentbasis
Upon consummationof sale
Upon everyinstallmentpayment
Outputtax- VATdue on sale or lease of taxable goodsorpropertiesorservicesbyanypersonregistered
or requiredtoregisterunderSec236 of Code.
Creditable againstoutputtax

Tax Remedies
Assessment(self,deficiencyandjeopardy)
- Computationof tax liabilitiesanddemandforpaymentwithinthe prescriptiveperiod
- Law and factson whichthe assessmentismade;otherwise,the assessmentshall be void
Constructive receipt- if creditedorsegregatedinfavorof a person.
Constructive methodsof income determination
1. percentage method
2. net worth method
3. bank depositmethod
4. cash expendituremethod
5. unitand value method
6. 3rd
party informationoraccessto recordsmethod
7. surveillance andassessmentmethod
Tax deficiency- amountbywhichtax imposedexceedsthe amountshownasthe tax by the taxpayer
uponhisreturn
Tax delinquent-self-assessedtax perreturnfiledbythe taxpayeronthe prescribeddate wasnotpaidat
all or onlypartiallypaidordeficiencytax assessedbythe BIRbecame final andexecutory.
Powersof CIR
1. Examination of returnsanddeterminationof tax due
2. Use of bestevidence obtainable
3. Authoritytoconduct inventory-taking,surveillance,andtoprescribe additional procedural or
documentaryrequirementsandpresumptive grosssalesandreceipts
4. terminate taxable period
5. real estate values
6. inquire intobankdeposits
7. accredit andregistertax agents
Periodof assessmentandcollection
General rule:3 yearsfromlast dayof filingof return
1. If return filedbefore lastday- 3yearscountedfromlastday of filing
2. If return filedafterthe lastday- 3 yrs countedfromlastday of actual (late) filing

Exceptions- 10yearsfrom date of discoveryof:
a. Non-filingof return
b. Filingof false or
c. Filingof fraudulentreturnwithintenttoevade tax
April 15- count of 3 yrs
Periodof collection
1. 5 yrs fromassessment
2. 10 yrs withoutassessment,incase of false orfraudulentreturnwithintenttoevade tax or
failure tofile return
BIR 2 options
1. Assesscorrecttax liabilitywithin10yrs fromdiscoveryandcollectonsaidassessmentwithin5
yrs fromassessment
2. File aproceedingincourtfor collectionwithin10yearsfrom date of discoveryof falsity,
fraudulentoromissionwithoutassessment
Fraud
1. Questionof factthat cannot be presumedbutmustbe sufficientlyestablished
2. Understatementnottantamounttofraud;shouldbe at least30% underdeclarationof income
prove intentionandsubstantial understatementof tax liability
3. Fictitiousexpenses
4. Allegedandprovedincourt
5. Actual and notconstructive,wrongdoingwith sole objectof avoidingtax
Suspension
3 years- notfixed
-extendedorsuspended
-If TP and BIR execute waiver
- CIR prohibitedfromcollectingonthe tax,suchas whenTP appealsthe decisionof the CIRondisputed
assessmentonCTA
-TP requestsforreinvestigationgrantedbyCIR
-TP cannotbe located
-warrantof distraintorlevyisdulyservedandnopropertycouldbe located
-TP isout of the Phil.
-Taxpayer’sremedies- administrativeprotest,refund,CTA appeal

RMO 12-99
1. Filingof return
2. LOA
3. Informal conferece
4. PAN
5. FAN
6. Administrative protest
7. Final decision
8. Appeal toCIR
9. Judicial appeal
NewRule
1. PAN
2. FLD/FAN within3yr period
3. Administrative protest
4. FDDA
5. Appeal
6. Judicial
15 days to respondfromreceipt
PAN not required(MDECP)
1. Mathematical error
2. Discrepancybetweentax withheldandaccountactuallyremitted
3. Excise tax not paid
4. Taxpayerwhooptedto claimrefundortax creditof excessCWTcarried overthe amount
5. Article locallypurchasedorimportedbyanexemptpersonhasbeensoldortradedtonon-
exemptpersons
Claimfor excessand unutilizedcreditable withholdingtax
1. Within2 yr
2. Copiesof the certificate of tax withheld
3. Part of gross income of taxpayer
4. Excessand unutilizedCWTnotcarriedover
FAN
1. In writing
2. Name,address,TIN,basictax, period,penalties,date tax mustbe paid
3. Facts, laws,rules,regulationsorjurisprudence
4. Personal deliveryorregisteredmail
5. SignedbyCIR or authorizedrepresentative
6. CoveredbyLOA

Administrative Protest
1. Within30 days
2. Reconsideration
3. Re-evaluation
4. Reinvestigation- withnewevidence andwithin60days
5. Appeal toCommissionCTA within30days
6. Judicial appeal- 30daysor 30 daysfrom last180
GovernmentTaxation Remedies- tax beingfinal
A. Administrative
1. Tax Lien
-legal claimorcharge onpropertyinfavor of government
- notvalidagainstany mortgagee,purchaserorjudgmentcreditor
-governmentliensuperiortomortgage ingoodfaithgenerally
2. Actual distraint- enforcedongoods,chattels,effectsotherthanpersonal property
3. Constructive distraint
-retiringanybusinesssubjecttotax
-intendingtoleave Philippines
-removinghisproperty
-intendingtoperformtoobstructproceeding
4. Levyof real property- seizure
5. Forfeiture togovernment- nobidder/insufficientbidtopaytaxes,penaltiesandcosts
6. An injunctionnotavailable torestraincollectionof tax- CIRdecisionasanexception
B. Judicial/Civil & Criminal
1. Approvedof CIRincase of fraudand filingof tax evasion
2. Can file criminal case immediately
3. 25% surcharge- failure tofile anyreturnlate payment
4. 50% surcharge- willful neglecttofile andreturn/filingfraud
Compromise- reasonabledoubttothe validityof the claimagainstthe TPexistsandfinancial positionof
TP demonstratesclearinabilitytopaythe assessedtax;CIRdiscretionarypowertocompromise court
cannot interfere
Abatement- tax oranyportionthereof appearstobe unjustlyorexcessivelyassessedandadministrative
and collectioncostsinvolveddoesnotjustifythe collectionof the amountdue
Cannotbe compromised:
1. Withholdingtax cases
2. Criminal tax fraudcasesconfirmedassuch bythe CIR/dulyauthorizedrepresentative
3. Criminal violationalreadyfiledincourt
4. Delinquentaccountswithdulyapprovedschedule of installmentpayments
5. Caseswhere final reportof reinvestigationorreconsiderationhave beenissuedresultingto
reductioninthe original assessmentandTPisagreeable tosuchdecisionbysigningthe required
agreementform
6. Caseswhichbecome final andexecutorafterfinaljudgmentof courtwhere compromise is
requestedonbasisof doubtful validity
7. Estate tax caseswhere compromise isrequestedonthe groundof financial incapacityof the TP.

Local GovernmentTaxation
Fundamental Principles(UEPIP)
1. Uniform
2. Equitable forpublicpurpose,notunjustandnotcontraryto law
3. Inure to benefitof local governmentunit
4. Shall notbe letanyprivate person
5. Progressive
Nature and Source of Taxing Power-EachLGU can:
1. Create itsownsourcesof revenue pursuanttoordinance
2. Levy,taxes,feesandcharges
3. Accrue solely/exclusivelytothe LGU
4. Can alsogrant tax exemptions,incentiveorreliefs
Penalties
1. Surcharge not exceeding25%of amountof taxes,feesorchargesnot paidon time
2. Interestnotexceeding2%permonthof the unpaidtaxes,feesorcharges,until suchamountis
fullypaidbutinno case shall the total interestonthe unpaidamountor portionthereof exceed
36 months
Exemptionsare withdrawnunlessotherwise provided
Adjustlocal tax rates- LGU can adjustrates notoftenerthan1 every5 years
- Notexceed10%
Scope ofTaxing Power
Provinces
1. Transferof real propertyownership
2. Businessof printingandpublication
3. Franchise tax
4. Tax on sand,gravel andotherquarry resources
5. Professionaltax
6. Amusementtax
7. Annual fixedtax foreverydeliverytruckorvan
Municipalities- ceilingis50%
1. Business-basedongrossreceiptsnotgrossrevenueanddoesnotinclude condominiums
2. Licensing/regulationof businessandoccupation
3. Sealingandlicensingof weightsandmeasures
4. Fisheryrentals,feesandcharges
5. Communitytax
6. Real PropertyTax (RPT) withinMetroManila

Cities
1. Same withprovincesandmunicipalities
2. Leviedandcollectedbyhighlyurbanizedandindependentcomponentcitiesshall accrue to
themand distributedinaccordance withthe provisionsof LGC
3. Rateson levymade bythe Citymay exceedthe maximumratesallowedforthe province or
municipalitybynotmore than 50%
Exceptions- rates of professional and amusement taxes
Barangays
1. Taxeson storesor retailers
2. Service feesorcharges
3. Barangay clearance
4. Otherfeesandcharges
Communitytax – citiesor municipalitiesmaylevyto
Individuals
1. Inhabitantsof the Philippine
2. 18 y.o.or over
3. Regularlyemployedorsalarybasis
4. Businessoroccupation
5. Ownsreal propertywithan aggregate assessedvalueof P1Kor more
6. Requiredbylawtofile anincome tax return
Juridical
1. Everycorporationno matterhow createdor organized
2. Whetherdomesticorresidentforeign
3. Engagedinor doingbusinessinthe Philippines
PersonsExempt
1. Diplomaticandconsularrepresentatives
2. Transientvisitorswhostayinthe Philippinesfornotmore than3 months
Place where individualresideswhere principal office islocated
Accrue on 1st
Januaryof each yearto be paidnotlater thanFebruary
24% interestif unpaid

Common limitationsonthe taxing powersof LGUs (IDEC-GAPEP-GRR-ECN)
1. Income tax exceptwhenleviedonbanksandfinancial institutions
2. Documentarystamptax
3. Estate tax
4. Customsduties,exceptwharfage onwharvesconstructedandmaintainedbythe LGU
concerned
5. Goodscarried intoor out of,or passingthrough,the territorial jurisdictionsof local government
unitsinthe guise of charges forwharfage,tollsforbridgesorotherwise,orothertaxes,feesor
otherwise
6. Agricultural andaquaticproductswhensoldby marginal farmersandfishermen
7. Pioneerornon-pioneerbusinessenterprisesfor6and 4 yearsrespectivelyfromdatesof
registrationandcertifiedbyBoardof Investments
8. Excise taxesorarticlesenumeratedunderNIRCasamended,taxes,feesandchargeson
petroleumproducts
9. Percentage orVATon sales,bartersorexchangesorsimilartransactionsongoodsor services
exceptasotherwise providedherein.
10. Gross receiptsof transportationcontractorsandpersonsengagedinthe transportationof
passengersorfreightbyhire andcommoncarriers byair, landor water,exceptasprovidedin
the Code
11. Taxeson premiumspaidbywayor reinsurance orretrocession
12. Motor vehicle registrationexcepttricycles
13. Philippine productexported
14. Cooperatives
15. National Government
Remedies
TaxpayersRemedies
1. Assessmentwithin5yearsfromdate theybecome due
2. In case of fraud- 10 yearsfromdiscoveryof fraudor intenttoevade payment
3. Collection:5yrsfrom the date of assessmentbyadministrative orjudicial action
Prescriptionperiodsuspended
1. Treasurer- legallyprevented
2. Reinvestigation
3. Out of the country or cannot be located
Protest- within60days fromreceiptof Notice of Assessment
Claimsfor refund oftax creditfor erroneouslyorillegallycollectedtax,fee or charge
1. Writtenclaim
2. Within2 years

Civil RemediesbyLGU
1. Non-paymentof atax,fee orcharge createsa liensuperiortoall liensorencumberancesin
favorof any otherperson,enforceablebyadministrativeorjudicial action
2. Lienmay onlybe extinguishedupon full paymentof the delinquentlocal taxes,feesandcharges
includingrelatedsurchargesandinterests
Criminal Remedies
1. Administrative Action
2. Judicial Action
Distraint of personal property
1. Seizure of personal property
2. Accountingof distrainedgoods
3. Publicationof time andplace of sale andarticles
4. Release of distrainedpropertyuponpaymentpriortosale
5. Procedure of sale
6. Dispositionof proceeds
Levy of real property
1. Dulyauthenticatedcertificate
2. Writtennotice of levy
3. Connotationof levy
4. Advertisementandsale
Exceptions(TOB-CUPLA)
1. Toolsand implementsnecessaryfortrade oremployment
2. One horse,cow,carabao or otherbeast
3. Clothingandthat of hisfamily
4. Furniture andfixturesandutensilsusedinhouseholdnotexceedingP10000
5. Provisions,includingcropssufficientfor4 months
6. Librariesof doctors,engineers,one fishingboatandnetnotexceedingP10000
7. Anymaterial orarticle for house orimprovementof anyreal property
Judicial Action
1. Local governmentmayinstitutionorordinarycivil action withregularcourtsof proper
jurisdictionforthe collectionof delinquenttaxes,fees,chargesorotherrevenues
2. The civil actionshall be filedbythe local treasurer.

Real Property Taxation
Principles(CAPUE)
1. Currentfairmarketvalue basisfor assessment
2. Actual use
3. Private personcannotbe lefttoappraisal,assessment,levyandcollectionof real propertytax
4. Uniformclassificationwithineachlocal governmentunit
5. Equitable appraisal andassessment
Nature (DAPSA)
1. Directtax
2. Ad valoremtax
3. Proportionate
4. Single/indivisibleobligation
5. Attachesonthe property
6. Leviedthrough/thruadelegatedpower
Coverage
1. Land
2. Building
3. Machinery
4. Otherimprovements
If province 1% of assessedvalue of real property,cityormunicipalitywithinMetroManila- 2% of real
property
If idle lands- 5%of assessedvalue of property+basictax
Coveredidle lands
Agricultural lands- more than1 ha suitable forcultivation,dairying,inland,fisheryandotheragricultural
usesone-half ½of whichremainunutilizedorunimproved.
Otherthan agricultural- more than1000 sqm inarea ½ of whichunutilized/unimproved
Exempt idle lands
1. Force majeure
2. Civil disturbance
3. Natural calamity
4. Or any cause or circumstance whichphysicallyorlegallypreventsimproving,utilizingor
cultivatingthe same

Special levyfor public works
- Withreasonable accuracythe nature,extentandlocationof the publicworkstobe
undertaken,the estimatedcosts,the metesandboundsbymonumentsandlinesandthe
numberof annual installmentswhichshouldnotbe lessthan5 nor more than 10 years
- Sanggunianmayfix differentratesfordifferentpartsorsectionsthereof,dependingon
whethersuchlandismore or lessbenefitedbythe proposedwork
Special Education Fund (SEF)
- Province,orcityof municipalitywithinMetroManilamaylevyandcollectan actual tax of
one percentonthe accessedvalue of real propertywhichshall be inadditiontothe basic
real propertytax
Exemptionfrom real propertytax (RPT)- RCWCE
1. Ownedby Republicof the Philippines
2. Charitable institutions,churchesetal actually,directlyorexclusivelyusedforreligious,
charitable oreducational purposes
3. Local waterutilities- actually,directlyandexclusivelymachineriesandequipment
4. Cooperatives- real propertyownedbyCooperative
5. Machineryand equipmentusedforpollutioncontrol andenvironmental protection
Proof of Exemption(DA30T)
1. Documentaryevidence
2. Give to local assessor
3. Within30 daysfromdate of declaration
4. Failure tofile will be listedastaxable
GOCC- not coveredbyexemptionsince exemptiononlyreferstoinstrumentalitieswithout
personalitiesdistinctfromthe government(MIAA andPPA cases)
Lung CentervsQC- charitable institution/hospital use foritspatients,payingornon-paying,are
exempt
-propertyleasedtoprivate entitiesare notexemptbecauseitisnotactually,directlyandexclusively
usedforcharitable purposes

Administrationof Real PropertyTax
1. Declarationof real propertybyowneror administrator
-sworn statement
-sufficientdescription
-1 every3 years- January1 to June 30
2. Declarationbyanypersonacquiringreal propertyormakingimprovement
-swornstatementof true value of property
-toprovincial,cityandmunicipal assessorwithin60daysafter acquisitionorimprovement
3. Declarationbythe provincial orcityor municipal assessor
4. Notice of transferwithin60 days;includesmode of transfer,descriptionof the property
alienatedandname andaddressof the transferee
5. Listingof Real Propertyinthe AssessmentRolls
a. Real Property- name of owner,administratororanyone havinginterestinthe property;
same withcorporation,partnershiporassociation
b. Undividedreal property-estate,heirs,deviseesorone/more co-ownersandsame with
corporation, partnershiporassociation
c. Real propertyownedbyRP,instrumentalities,political subdivision,beneficial use has been
grantedto a taxable person.Inthe name of the possessor,grantee orthe publicentityif
such propertyhasbeenacquiredorheldfor resale orlease
Classesof Real Property
1. Residential
2. Agricultural
3. Commercial
4. Industrial
5. Mineral
6. Timberland
7. Special- all lands,buildingsandotherimprovementsactually,directlyandexclusively
usedforhospital,cultural orscientificpurposes,andthose ownedandusedbylocal
waterdistrictsandGOCCs renderingessentialpublicservicesinthe supplyand
distributionof waterand/orgenerationandtransmissionof electricpower

Machinery- FMV is acquisitioncost
- If imported- includesfreight,insurance,bankandothercharges,brokerage,arrastre ad
handling,dutiesandtaxes,pluscostof inlandtranspo,handlingandinstallationchargesat
the presentsite
- Estimatedeconomiclife*replacementorreproductioncost
- Depreciation=5%of original costor replacementcostperyear
- Remainingvalue fixedatnotlessthan20% of suchoriginal,replacementorreproduction
costs as longas useful andinoperation
Assessmentlevel-FMV taxable value of property,ordinance, every3yearsandevery1 January
except:
1. Partial or total deduction
2. Major change in actual use
3. Great and suddeninflationordeflationorreal propertyvalues
4. Gross illegalityof the assessmentwhenmade
5. Anyotherabnormal cause shall be made within90 days fromthe date of any cause and shall
take effectatthe beginningof the quarternextff.the reassessment
- Subjecttoback taxes=10 yrs prior
- Notification- within30days
Collection
1. 1 Januaryaccrual
2. Notice 1 wk for2 consecutive weeksbylocal treasureronorbefore 31 January
3. Local treasurer=collectingauthority
Prescription:
a. Within5 yearsfrom date theybecome due
b. Within10 yearsfromdiscoveryof fraud
Suspensionof Prescriptive Period
1. Legallyprevented
2. Reinvestigation
3. Out of country or cannot be located
Unpaidreal propertytax interest=2%permonth
Condonation- Sanggunian,Presidentof the Philippines
RemediesofLGUfor RPT Collection
1. Lien
2. Levy
3. Judicial 5-10 yearsby local treasurer

Purchase byLGU forwardof bidder
1. Local treasurer- within2yrs
2. Redemption- within1yr fromdate of forfeiture
Redemptionoftaxpayer
1. Protest- administrative
2. Judicial- 30/60 days

1234567tax-2-reviewer-

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to 1234567tax-2-reviewer-

Similar to 1234567tax-2-reviewer- (20)

Recently uploaded

Recently uploaded (20)

1234567tax-2-reviewer-